WASHINGTON — With so many people out of work, a lot of us are taking a second look at our finances and cutting down drastically on unnecessary spending. Sometimes it’s hard to know where to start and how we can learn to budget in the new economy we’re now living in.
The two financial advisors we spoke with said it’s imperative to maximize and prioritize each dollar you have in your accounts.
"First thing, you have to keep in mind is that you should have the patience to do nothing," Dawn Edgerton-Cameron, a financial advisor with Edward Jones, said.
These are uncertain financial times. The coronavirus has put millions out of work. Edgerton-Cameron said it’s important to know where each dollar is going.
"Be mindful of the things that you have to pay for, and the things that you don't have to pay for. It might be time to sideline some of those 'nice to have,' at least for the moment." She recommends looking at your bank statements and assessing how you’ve been spending your money.
Russell Stewart, another financial advisor, also suggests monitoring your bills that fluctuate.
"Whether it’s your utility bill, that's going to be your grocery bill, or simply just eating out," Stewart said.
Another tip Stewart suggested is knowing the choices you have.
"Everyone should just call your creditors and just explore their options to see if they can defer some payments, or maybe suspend some payments for a while; just see if they have that option," Stewart added.
The stock market has taken its fair share of hits too and may be more appealing to those who've never invested.
"If you think about it, the stock market is on sale," Edgerton-Cameron said.
Cameron said you should only consider investing if you have your rainy-day fund secured.
"The market right now is dancing. But if you think about what it's like when you go dancing, sometimes you’re moving forward, sometimes moving back. It’s all natural, it's all part of the dance. Make sure that you have a strategy, that you're partnering with someone who understands what you're comfortable with that risk, and the volatility."